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Binance.US Scrambles to Find Banking Partners

Binance’s American partner is making active efforts to find a bank to serve its customers.

Binance.US Scrambles to Find Banking Partners

Source: Pixabay.com

After the collapse of Signature Bank and Silvergate Capital, which provided financial services to the cryptocurrency sector, there was a problem with establishing business relationships with banks ready to interact with this industry. The current situation is another episode of the history of failures for Binance, the world’s largest cryptocurrency company, and its branch in the United States, Binance.US.

Previously, dollar deposits were sent to Signature or Silvergate. At the beginning of spring, this became impossible. Silvergate has decided on voluntary liquidation. Signature came under the control of regulators, which was the result of one of the largest bankruptcies in the history of the American banking system. The termination of the functioning of these financial institutions creates new realities, within which cryptocurrency companies are forced to look for new partners.

The media, citing sources, report that currently the American branch of Binance stores money on its behalf from at least one intermediary. Due to the fact that this intermediary stores funds in his bank, the process of transferring money may be slowed down.

The media, citing sources, also report that Binance tried to establish direct banking relationships with banks, which include Cross River Bank, a New Jersey lender working with some crypto companies and fintech firms. These attempts did not bring the desired result. Insiders claim that partnership has not been achieved due to the fact that financial institutions are afraid of the risks associated with the actions of regulators.

In March, it became known that the former CEO Binance.US Catherine Cowley has left the company. This happened after the government announced the launch of an investigation into this firm. The U.S. Commodity Futures Trading Commission (CFTC) has indicted Binance CEO Changpeng Zhao, Binance Holdings Limited, Binance Holdings (IE) Limited, and Binance (Services) Holdings Limited.

A representative of Binance said that the company has been cooperating with the CFTC for two years and called the investigation unexpected and disappointing.

As we have reported earlier, Binance.US Delists Tokens Helium.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.